Vehicle Loan

EligibilityFor Private use : Individuals as well as Business Concerns (Corporate or non-corporate)..

Amount of Loan

Property value

Maximum Loan to Value

New

Second Hand

Upto Nu.800,000

60%

40%

Above Nu.800,000

50%

40%

MarginFor New Vehicles: 40%. Old Vehicles: 60%.

Rate of Interest13% p.a

Repayment periodMaximum 5 years

Security
The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It will be registered in the name of the borrower jointly with the Bank.

Guarantee / Collateral Security
Guarantee of spouse, if employed/ earning or third party guarantee, OR Collateral Security in the shape of either Immovable Property or Liquid Security equivalent to 100% of loan amount. Additional guarantee of parent(s)/ spouse to be taken incase their income has been taken account for determining loan amount.

Disbursement
The intending borrower will be required to settle the transaction for purchase of vehicle needed by him/her with the seller and will be required to deposit the difference of the cost of the vehicle to amount of loan, and thereafter, the advance will be allowed to him/her from the bank by paying the entire price of the vehicle to the seller directly on behalf of the borrower.